Which of the Following Is the Consumer Price Index Used

question 106

Multiple Choice

Which of the following is the consumer price index used for?

• A) to differentiate between gross national product and gross domestic product
• B) to turn dollar figures into meaningful measures of purchasing power
• C) to characterize the types of goods and services that consumers purchase
• D) to measure the quantity of goods and services that the economy produces

---

Definitions:

Line-by-Line Method

A method of consolidation where the parent company's and its subsidiaries' financial statements items are added together line by line.

Jointly Controlled Operations

Business activities that are managed and operated under the joint control of two or more entities, sharing both the benefits and obligations.

Operating Activities

These are the day-to-day activities of a business related to its primary operations, such as selling products or providing services, which are reflected in the cash flows of a company.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity and overall financial health.